Everything You Want to Know About Commercial Trade Licence

A commercial trade Licence is issued to those who deal in commercial trading. It differs from a General Trading Licence and allows trading in more specific and limited products. On the other hand, a General Trading Licence also does not allow all goods and commodities to be traded. Items like automobiles and software can only be traded with a Commercial Trade Licence. Goods traded can be imported and sold within the UAE and exported for sale outside the UAE.

With a commercial Licence, you can trade in almost any goods from jewellery, garment, electronics, toys, packaging, food and many more. It also allows you to engage in services under a commercial Licence that includes IT services, consultancy services, designing services, brokerage and real-estate services.

Who Can Obtain a Commercial Licence?

You can incorporate as a Limited Liability Company depending on the number of shareholders. To establish a Limited Liability Company, you will need a minimum of one and a maximum of 50 shareholders.

What Activities Can You Engage in Under Commercial Trade Licence?

The activities that can be undertaken under a Commercial Business Trade Licence in the United Arab Emirates are:

• Automobile and shoe trading
• Brokerage
• Computer Systems and Communication Equipment
• Consultancy and contracting
• Cold storage
• Electronic equipment installation and maintenance
• Food Items
• Furniture
• General store
• General warehousing
• IT Services
• Import/export
• Medical and Surgical Equipment
• Plumbing and sanitary contracting
• Readymade Garments
• Real Estate Services
• Rental services
• Restaurant management
• Self-storage services
• Software Services

You can obtain the complete list of permitted commercial business activities from the Department of Economic Development (DED) or a business set-up consultant.

What are the Advantages of a Commercial Trade Licence?

• Up to ten related commercial activities under a single commercial Licence
• Fully repatriate your capital and profits
• Can hire global talents as long as there is commercial space to accommodate them
• Allowed to import items from other countries and/or export them too

How to Obtain a Commercial Trade Licence in Dubai?

• Select the business form and the activities. Pick from the activities that come under the commercial Licence;
• Draft the Memorandum and Articles of Association of the company, clearly specifying the activities to be completed;
• Register the company with the Department of Economic Development in Dubai and get a VAT number;
• Pay the fee related to the company registration and for the issuance of the commercial Licence.

What are the Documents Required for a Commercial Licence in Dubai?

When making your application, you are required to provide some essential documentation:

• Completed application form
• Passport copy of the proposed owner or owners
• Two colour passport size photos.

What is the Cost of Obtaining a Commercial Licence?

The fees of obtaining a commercial trade Licence vary, depending on the number of business activities included in the Licence for your business and also on the legal structure of your company. According to the company formation rule, the higher the number of business partners or stakeholders, the higher is the fees. Similarly, if you have included more activities in the licence, the cost will increase. So there are no fixed fees on how much it will cost to obtain a commercial trade Licence in Dubai or elsewhere in the UAE. The prices vary by emirates too, so when you decide to form a company in any of the emirates of the United Arab Emirates, consult a business setup professional to help you determine the exact costs of obtaining a commercial Licence.

Find a Professional Business Setup Consultant in Dubai, UAE

You may find the process of obtaining a commercial Licence complicated. You need not worry then! Simply find a professional business setup consultant to listen to your requirements, and they will provide you with all required advice on company formation.

We at OBK Business Centre work closely with legal experts to ensure that you get the best business setup services without facing any problems.